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Low Interest Loans to Employees

id : 81   cat : Business Tax   
CPA's help me understand who is suppose to pay for fringe benefit tax in a case where employees are given loans below market rate by organization, is the employees or employer?
Asked by : Charity Sambu
 DOQ : 2016-09-22 14:00:00
   Charity Sambu
It's the employer
   Vincent Yegon    Vincent Yegon  2016-09-22 14:19:00

Other Answers


The tax burden being the difference btwm market rate or Rate given by KRA and the employer interest rate is borne by the employer If it a resident company @30%
 votesDOWN : 0    votesUP : 0
: Njenga Moses  DOA   2016-09-22 14:30:00


It's a benefit to the employees and hence the difference between the market rate and the rate given is what is taxed. The employer remits to kra while the employee pays for the benefit. Hence it's the employee. In an event where the employer pays for the
 votesDOWN : 0    votesUP : 0
: Nganga Mwangi  DOA   2016-09-22 14:25:00

my Suggested answer
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